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tv   Fast Money Halftime Report  CNBC  October 13, 2017 12:00pm-1:00pm EDT

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50 years, a constant upward grind and phang big in hang in. >> tom is going to talk to scott on the half and the vix remains below 9.5. jon fortt, hope to see you back in a few days and meantime let's get over to judge wapner and "the half. heart, carl. thanks so much tom lee coming up in just a little bit welcome to "halftime." i'm scott wapner our top trade, netflix shares crossing 200 bucks for the first time ever. eight firms bumping the company's price target so will earnings on monday keep that stock climbing with us on set, josh brown, steve wyse, jim lavanthal and jim brown all with us for the hour let's begin with shares of netflix hitting a new record high today, now up an astounding 60% year to date
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boy, josh, you looking a the price target increases, every day. monday you got a couple firms, wednesday two more and thursday three and friday today, two more the stock goes over 200 for the first time ever. morgan stanley today, 225. goldman goes to 235. >> nobody should ever listen to my opinion on netflix. i bought it hat like 70 and sold it at 100. that's 100 points ago. i -- i just -- look, it's not that i disliked it i just never felt like i really understood how it would get as big as it now is, and to some extent i still don't i understand how powerful the content is i don't disagree i pay for it myself. i just -- i've always looked at this segment of the market as hypercompetitive, and you know what it was and still is, but netflix is an amazing competitor, and the content, goldman's note, the content is driving stocks and if you were slow to understand that you missed a lot of it and i'm in that camp. >> i'm sure i'll hear i can't own it, too expensive, too rich
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for me those aren't the kind of stocks i buy. that sounds like a copout almost on a stock that's just run so far that people have missed. jim, i'm not looking at you thinking you're going to tell me that. >> he shade okay. >> he can buy 50 shares of jc penney for less. >> unless, of course, you want to admit it. >> is he the guy at the concert that yells free bird, every day. here's the answer. here's the answer. >> do you own netflix? >> i do not. >> would you buy netflix >> i don't think valuation is -- is a consideration or a reason not to buy netflix here. if it has rising revenues, the earnings are going to catch up to it. >> that's the point right there. >> this is a great point. >> and it does have rising revenue. the most interesting thing is the price increase they put through a couple of weeks ago. the share price or market cap has increased by roughly $8 million, $9 million and steve, our an old-time security analysis, you have the subscribers, if all upgrade, 80%
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gross mar gyp on that, you actually get an increase in the value that should be around 15 billion so the question for all of us, and this is on the valuation thing, i'm saying it should increase 15 billion it only increased 8, 9 by theol in market bill was the extra 6 billion already in the stock price, and i'm saying yes, this is news that happened two weeks ago josh, you're right about s subscriber growth and that will continue and what everybody is upgrading on is the price increase, and i'm already saying that's in the stock. >> if you're making the argument, you're betting that the content delivery and their quality of content is not going to continue to improve. >> no, no, no, not at all. that's why i gave an 80% gross margin to the number. >> it can improve. "narco's" season three, better than groems. i don't thi -- better than "game of thrones. they are making that show primarily in spanish and doing
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this in europe and asia. they are making native content shows all over the world in a way that arab bow couldn't even dream of right now it's so powerful the international store to, and what's really fascinating about that is wall street hated it i was on the show the day they said we're going to spend like $1 billion internationally the stock absolutely collapsed everyone said it's execution risk they will have to do a secondary, et cetera very, very short-sighted, myself included, because, boy, have they pulled it to me is so much more powerful than what they are doing to the u.s. >> does this change the way, steve, that investors should look at high-growth tech stocks. some have changed the way they look at amazon and value investors have been willing to buy it for some of the very same reasons that have propelled netflix to where that stock currently is. >> well, you know, it's funny. netflix, i sold the stock in the 170s, and made some really good money on it.
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but netflix has better valuation than amazon. you can't compare the two. >> no. >> they are different stories. >> but they are high valuation stocks. >> you still have to be a growth investor to invest in it and it goes back to discipline. if you're cheating your discipline a little bit and the worse thing that can happen you're successful at it. you'll cheat more, and you'll wind up in a lot of trouble and if you're a professional investor you'll lose your investors because that's not what they hired you for. part of the reason is the price increase and the other reason the stock is moving higher is because we keep hearing back cord cutters yesterday from at&t, hearing it from comcast guess where they are going they are going to netflix. content is getting more expensive. they will do well. they are the step for it, more so than amazon because they let people work on their own don't bother them at all it's a great reputation, and the momentum continues and they still have pricing power and we lose sight of that relative to what you're spending on cable or on satellite, this
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is -- this is -- this is not even a weekend tip can you talk about their price target because you always get another stock with this stock and it valuation and maybe that will be monday. >> it's a herd everybody has come out for the most mart. >> i hope they miss monday, hope they miss bad so i can get it. >> the question is how good do they need to both? >> oh, they need to -- they need numbers. >> do you think it gets in the stock, a big beat? >> they are going to say we'll spend a lot more money. >> you don't own it either >> but it's a great company, but at the stock price, like we've talked about,ive 'missed it. >> let me ask you this who owns yelp? >> i do. started buying it. >> that's a high piece. >> that's a high pe stock. >> why did you buy yelp? >> it has a lot more room to grow than netflix does in my view. >> really? >> yeah. because it's just starting actually, if you look at whole space that yelp is in, it's not
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everywhere, it's got international growth and u.s. growth, and i think the potential for them as more and more people get on. >> i'm saying you're willing to buy potential. >> yes. >> that's what we're depending on with all of these stocks, whether it's tesla or amazon or netflix. >> but yelp is making real money, and i think they have the potential to really grab share, much more -- the road map ahead for them is much larger than netflix. i don't agree with netflix we missed it, and i think it could be a good room to run, but at some point the law of large numbers come to affect netflix. >> who owns salesforce anybody? >> why not that's another high valuation stock. >> i don't think you're going to go through all 500 stocks. >> but let me -- >> i'm trying to make a point. >> so let me answer the question to the point i think you're making the stock that has the highest priced earnings-to-multiple that i own is google, and depending on what analyst numbers you use, somewhere between 22 and 25 times earnings, okay
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this was what steve was saying earlier. i know who i am. i'm a value investor, okay the day that i start moving outside of that 20 to 25 multiple is the highest that i go is the day that i run the risk of making a very bad mistake, and my investors say to me saying i thought you were a value investor. >> we all own the stock because they are in the top 100 s&p names in the index if you have a 401(k) by default, you have exposure to everything here so the question is do you want to have above and beyond exposure to these names in the individual sense, and in some cases you do in some cases you don't. you can't kiss all the girls charlie munger says it bet our job is to get a few things right, not to understand every single thing in the universe i don't think it's fair to say you own yelp but why wouldn't you own netflix? you might think you have an edge on one name and not the other. >> the point i'm trying to make is when as an investor do you make an exception for a very high valuation stock >> when your cop vicks level is very high. >> you're guessing >> you know the story
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intimately, but at the end of the day most stocks are guessing. >> of course you're guessing of course you're guessing. >> guessing. >> well, it's an educated guess. there's probabilistic thinking at the end of the day you're making a guess you have to be. >> i think that what these companies have done time and time again in the f.a.n.g. stocks and amongst the high productivity stocks like amazon, like netflix has been that they consistently beat earnings and people have been proven wrong. people have been proven too conservative in terms of their earnings expectations so what you need to do when evaluating these stocks, use valuation as a metric in the background but what's more important is to look at the earnings trajectory and their ability to innovate and to be able to capitalize on that innovation. >> okay. let's go to another stock in the news today nvidia, hitting an all-time high as well. that stock is already up almost 200% in the last year and now
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needham thinks there's plenty of room for the stock to run. >> another perfect example for the conversation that we're having you love this name you've been in this way and this stock is 50 times forward pe. >> i bought it at $50. >> so you're not guessing. >> well, of course. >> you feel like you're making an educated decision based on where the company will grow. >> nvidia was easy, not hindsight and bias because a lot of things that were's turned out not to be. i think this one was easy and frank lit story here has been total addressable markets and if you talk to five stocks that don't own nvidia, why don't you own, it one says crypto currency, other says automotive, another ai and another augmented reality. the data center business is a total addressable market over the next few years, somewhere between $21 and 35 billion according to the analysts and
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nvidia could tapiture like a lot of that, and they are saying that it could be a bigger market for the company than it's gaining -- its video gaming business which is 57% of the company's total business so this is like yet another avenue of growth, data center for the company out of, action i said, seven, eight, nine, different opportunities that they have in front of them. that's what's going on here. i don't think it was complicated to understand that when i first got into it. it's kept me involved with the stock. i've seen analysts come on and say when the bitcoin bubble blows up it's going to hurt nvidia. >> they are involved in so many other things. >> take a look at the week that has been and wondering if things are starting to get a little hyperbolic amazon gets a 1350 price target along this week with another stock out of the f.a.n.g. group and nvidia gets a big bump here. we talked about everybody and their brother coming out and giving a bigger price target to netflix. >> okay. >> what's happening here >> i'll tell you one thing that's happening
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having run a research department in a major investment bank, go to analysts and they know you're coming to him and price target, either take it off the list or find a reason to raise your price target that's part of what happens with the big firms. also, there's something called institutional investor which is a poll, if you want a client coming in with an institutional climb, have the highest estimate on the street or the lowest. that's part of driving also and then, of course, the fundamentals that are underwriting all of this which they deserve in terms of nvidia in retrospect, it may not have been so difficult, but for me it was because i bought the stock, had it double in the calls that i bought, did well in the options, and i sold it below 100. >> scott >> you're just not used to an nvidia doing this. this is very aberrational. there's nothing easy about it. >> we're dancing around a point that's important to me which is there are very different ways to make money in the market and invidya is a great case. josh, great call you've been all this and made good money a direct competitor, you and i
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have talked about it it's intel. competes with them in many of the areas. >> barely, and i bought that one, foo. >> but the point that i'm driving at is a value investor can own intel as i have, up 20% in a couple of months. not saying it's an nvidia, but it's making good money for me and i say at this multiple great prospects ahead. these guys are head-to-head when you look at automotive and data center, not gaming, but they are head-to-head on a bunch of different ways a growth investor is going to make a ton of money in inindividual why and already has. god bless that investor but a value investor will make money in the same space than an intel. >> very difficult to distinguish which fundamentals are driving it, what are etfs that are driving it and -- >> can i add one. >> hold on. >> and one is pure momentum that's driving it and that's when it starts to get tough, okay there's no way these companies, if you do a valuation, as dcf models, i'm a cash flow investor as you are, there's no way you're going to justify or see
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50-cent growth in perpetuity not going to happen. >> so you're 00% right, but that's why people who are actually actively managing momentum portfolios can use technical analysis and frequently do because you say to yourself, okay i really have no possible way of knowing, even if i got the earnings right, i can't tell you what investors a year from now will be willing to pay for those earnings that's the guesswork part. what you can do is say, okay, let me let price tell me that there's some sort of a sentiment shift rather than just randomly throw a dart, okay, this is where you sell it. so i think with a name like nvidia or a name like frankly netflix, you can have a trail. you can say, okay, i'm willing to take 10% risk here and how does that align with the moving average that maybe makes sense, and it's not that you're going to nail it it's that there's some rhyme or reason for why you're getting out other than feelings, and i think people have done well. >> i want to get back just before we take a break to the
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question i asked i mean, is this a week that we should tuck in our back pocket and remember again, google and amazon go to 1350 and nvidia goes to 250 and netflix 235, right around there. >> nearly reminiscent of '99, and i'm not saying it's like '99 but in the days when people came to me, i pay you a lot of money. i'm going to work at or work to work at eerily similar to it. >> i would own all these stocks. look at your portfolio and look at your allocation if you are so overallocated on the f.a.n.g.s and other techs and sem hiss and people are 30%, 40%, 50%, take some profits off the table. not a bad thing to do. >> record highs in the market for the dow, s&p and nasdaq. and coming up next, tom lee has a new call on stocks he's going to join us right after the break and here's what else is coming up on "halftime."
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>> the bank trade, mixed q3 earnings results coming up our desk debates the best way to play the sector. plus, josh brown is keeping it real in a brand new trade school why he says one type of investing might not be your best heproach "t halftime report" with scott wapner and the traders is back in two minutes win an uncertain world?k predictable income pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time
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welcome back to "the halftime report. wells fargo lower on a revenue miss there's bank of america higher by 1.5% and pnc financial is virtually flat what did we learn this week about the bank stocks? now that we've gotten the earnings report, the stocks had run a lot into the numbers what do we do now? where do we go from here >> you saw a lot between the haves and have knots between where they had exposure. one of the reasons bank of america did better is because they have a higher book or higher concentration in residential mortgages. obviously the stocks that did worst has a higher concentration in consumer loans and credit cards and it's a lot given where the valuations are, and given how much it's run it's become more of a stock pick per's market looking for the relative value opportunities. >> picking up off of that, what are we going to pick >> so, i'm staying with where i am which is b of a and city. still think that they are relative definitely to the rest of the market. i don't mean the pe necessarily, that you've seen expansion or
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multiples in the market very much and you still haven't seen it here. they are below historic levels on price to book, some of them, so i'm still staying there and if they were a tech stock and beat by a penny, your stocks would be up 20% but here they are not so there's still some sanity in the market. >> i like those two. i also still like jpmorgan and i would go for next weeks, earnings are coming with morgan stanley and schwab and they will do well with both their wealth management and interest rates with deposits of increase. >> you think you've got a good read on any of those by virtue of what happened this week >> not on those two. those two have very different businesses and good tailwinds behind them? each if they pull back, i want to own them. >> josh? >> look, i'm in jpmorgan, but, you know, certainly not the kind of thing, oh, my god, when are these banks going to real already or they are up 10%, is a% you look at mastercard the stock is up from 100 to 150
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this year. this is a financial company. this is where the money is being made the charts are scare paypal, transaction processing, so much. might not be big dividend payers but this is where there's a ton happening and i like non-bank financials better. >> they are trading at 25 times earnings so they are at their peak pe while all the other banks are trading at the lowest market multiple. >> more expensive than the banks in january and february. >> always have been. >> that's not a reason -- that was not a reason to say -- >> that is that's a classic example of owning really good company with different multiples. >> owning companies so heavily regulated versus ones that are slightly regulated. >> i think that transactions, there are areas of finance that are better than money center banking, and i would rather focus elsewhere. >> give you a reminder as well, the cfo of wells fargo john
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shrewksberry will be on cnbc later this afternoon. >> let's now bring in tom lee of fundstrat, changing his view on the market and joins us on the phone. tom, are you there >> i'm here. >> all right so you've gotten incrementally more positive. how would you characterize what you just did >> well, scott, you know you can we've summarized it in our research report today. you know, this year we started the year really taking our cues from the credit markets and, you know, high yields, widened in march. yield curve flattened. in the past that was always an important tactical signal to be cautious the market's narrative has been completely different it hasn't really been central to how the market has viewed earnings and tax reform, and so, you know, we -- we basically got steam rolled i mean, i think we don't want to be bearish when markets are
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focusing on other things, but maybe more importantly this week we noted that high yields finally confirmed the rally in equity so high yields which had been widening since march, this past week just made a new low which means that we're essentially not synchronized between what credit is saying and equities and that's the reason we, you know, painfully decided to get a shift from being cautious to neutral. >> yeah. so your target now for the s&p is still below where we are today, right you're at 2475 we're at 2556. how does that square up? >> well, it's -- there's puts -- there's positives and nexttives. we have strong seasonals into year end this period from october 1 to the end of the year is always good for stocks, and i think that there is positives from potential tax reform
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the one thing we focused on our research piece today is that a lot of this strength that we see and the demand for risky assets is being driven out of europe because european yields are just so downright low european higher issuers saw their yields fall to 2.2% this year and that's below the cost of the u.s. government, so the european junk bond issuers can borrow money cheaper than the u.s. government today so i think that that's actually spilling over to the u.s. >> we had an interview earlier today, our sara eisen did, with stan fisher, an sara asked him about the trajectory for rate hikes and specifically about the likelihood of whether december was still achievable in his mind let's listen to what mr. fisher told us, and we can react on the other side stan fisher. >> i think that it's achievable
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if we continue to run good qualities and with a global economy coming up and for the first time in a decade having sponsored growth in the global economy that we expect pedestrian there's a good chance for that. >> you know it was almost, tom, like the market took a little bit of a hiccup for a moment you know took a quick pill and everything seemed to be fine, but is the market ready for what the fed is truly about to embark on and let's say the next 12 months not just at the end of this year. >> that's a great question, scott, and what we have to keep in mind is that this year the fed has been raising, and, you know, obviously for more levels, but global central banks have been easing, but there's been a big offset, much bigger offset from global central banks on accommodation, and i think what's different about december and the reference there is that for the first time in this cycle i think the developed market
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central banks are looking at unemployment rates that are nearly at four decade lows you have to go back to the mid-'70s to find developed markets unemployment rates this low, and yet policy rates are basically at zero, so i think that there's a -- a recognition amongst central banks that the rate may not be appropriate given how low globally unemployment is so low >> and lastly, before i let you go i mean, we sparred on a couple of occasions on part of your market view which was, yeah, i'm cautious, but i think the f.a.n.g. stocks are going to continue to lead, and on more than one occasion i -- i think i relayed messages that i had gotten from -- from some pretty smart investors who said that just doesn't square up to -- to me, that if the f.a.n.g. stocks continue to work, the likelihood that the overall market is not going to work is almost slim and
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none, so then tell me where you think those stocks are going to go from here, and are they going to be the leadership and resume yet again that leadership role, if you will, to take the market to now where you think it can go >> yeah. great question, is to tscott, ad wanted to point out in 2015 f.a.n.g. was up close to 50% and we've seen history where the markets don't have to be in sync with that said, we still link f.a.n.g. until the end of the year because even looking at third-quarter earnings, all of this -- all of the earnings growth, only -- f.a.n.g. stocks only work in odd years so in 2018 just liking in 2016 you'll end up finding better opportunities. f.a.n.g. for whatever reason works in alternate years. >> tom, appreciate you coming to the phone.
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jump in off the subway and doing that for us. appreciate it. >> thanks for having me. >> tom flee of fundstrat. up next josh brown takes us to trade school. type of investing that may not be your best approach. has to do th sckwito picking as well that's coming up on "halftime" right after this i think it's terrific. your kids go to college and you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle
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your toughest questions right away- with volatility, it's all about your risk distribution. good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch. help from real traders. only with td ameritrade. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.
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all right. welcome back to "the halftime report "good old dark fashioned stock picking might not be what it once was thanks to the exploegs of the etfs and up of our own on the halftime desk says that may be a good thing. in a new blog post josh brown calls out the practice saying single stock positions no longer work in the wealth management position. >> so i want to be clear, i'm not conflating asset management with wealth management in asset management, single-stock management is
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great. >> you've got 7,000 financial advisory firms, probably every one of them should not be putting individual stock positions, because they don't have the expertise they don't have the in-depth analysis on all of the companies. i see all kinds of things happening at different firms i hear stories from friends and have seen it firsthand so i wrote my own version and basically made the case that managing the behavioral side of investing, which is way more important than what you own quite frankly at the en. day becomes almost impossible when you've got clients fixated on individual stop positions and tax issues that apply to some clients, not others and issues like opening an acountry in 2011 and opening one in 2015. you've got a stock trading 500% higher are you still allocating for all the same clients so it's kind of luke a funny way to take some real life situations and give people a sense of why it works so poorly at most wealth management firms. >> i mean, it is a somewhat controversial take obviously on the practice
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>> oh, my e-mails blew up, like, you know. >> and that's why we wanted to do it on the show because i'm sure people watching are taking issue with many so of the things that you're saying and i'm wondering around the desk as to whether others as well. >> i agree you have to be an asset manager first and wealth manager with that. you can be a hybrid and do both but if you're just one and taking discretionary orders from clients, i don't think that works, but you've got to have a focus and a discipline in your asset management you have to have a deep team, research analyst and stick to your conviction and then can you get it and where you get into trouble and i agree, when clients dictate what to do with your portfolio because you can't sit with them a couple years down the road and here's what you did because you said i couldn't own anything that has something to do with alcohol. at that point -- >> let me ask you a question, berkshire hathaway with a is trading 59 trading at 70 bucks since 2010
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goes to 110. the next sleeve of new accounts come in. are they owning berkshire hathaway, same amount? >> as an asset manager you have to have discipline. >> agreed. >> a new client coming in, is it a buy, hold or sell at that point, and then you look at it you'll say on a valuation basis i think i do want to own it but we'll wait for the right time. >> you have accounts with big gains and you'll rebalance them so you'll sell bath heir way on the same day that you'll buy it for someone else. >> everything that you're saying and what you wrote in your letter, which is a good letter, is absolutely true. >> right. >> and in particular the comment that you make about you can't scale, it okay now, look, let be clear. what we're talking about here is not whether stock picking is a way to generate output we're talking about how do you want to run your business. i submit to you just as a counterpoint that you can, very few of us can, but some of us can have a very good business doing the sort of things that you are correctly pointing out are a mishigosh but there have
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to be rules. you have to adhere to your minimums. >> so you have 100 clients. >> not is hundred, 30. >> i'm just throwing this out hypothetically 100 client, you bought them all gm, one of your favorite names it's working in a very big way >> put new money in it today. >> not even not. not even that. go to sell for 100 of them, three of them say six month later, jim, gm just went another 10%. why did you sell my gm put it back. >> you deal with it. you're right. >> how many versions of an asset allocation model can you run that way >> josh's point is not only can't you -- you can't deal with it you shouldn't deal with it. >> right. >> don't even bother doing it. don't even bother doing it. >> we're talking about how to run an asset managing business. >> wealth management different world. >> this is what sirat said you can can be an asset manager
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and be a hybrid as a wealth manager, that's what i do. it's a good business and you have to have rules and you can't have the degree of customization where you're herding cats and dogs because it will drive you crazy. >> where the behavioral issues surface because you may draw the line somewhere that your clients, well, they have an idea for a different line somewhere else. >> you have to be willing to fire a clirngts okay if you've got one client who is taking up half of your day, you know, arguing with you about whether you should have sold gm at 46 or bought, it you've got to make a business decision. >> here's our line we have individual stock strategies they are managed by outside firms. you're welcome to have that as part of your portfolio if it jives with what we're trying to accomplish with your plan. we're not going to have conversations about individual stocks i don't want to talk about how the new iphone sales are going in hong kong this is about meeting your future, not scratching the recreation al line if you can draw that line, you can be successful.
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>> it's all about communication. we're not talking about communication, talking about managing a business and what the business represents. >> no doubt. >> but you agree with many of the points that josh made. >> i agree, but on the institutional asset management level because 75% of institutional managers underperform the indices, so it's all about who you pick. forget about the marketing and lock at the numbers and see if you match up with the -- with the person that we're dealing with. >> if you are a wealth manager or a client. >> josh has addressed his. >> go visit -- >> you want to read this. >> the reform >> this is be story >> we'll have a link on our pages as well. >> where this is generated from -- >> cnbc got the results of a survey where 88% of investment advisers like myself are use etf. in 1986 the number was 40% the question is why? the answer is cost
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no there's something else going on and that something is it's impossible to manage the individual cognitive and behavioral foibles of hundreds of households and run a sane practice and you're seeing some expedience happen here. >> why would somebody need somebody like you if he can just buy the etf, reduce your cost, you charge 1% of asset, i don't know because it's been a great trade 80% of the time. why go to a wealth management at all? why not just the etf. >> the wealth management ones that are growing like mine have recognized that the real value to clients above and beyond anything we can say on asset allocation i think my portfolio is awesome. somebody has a different one, think it's better than mine, fine the financial planning aspect and helping part-time actually achieve what they want, not in their open lifetimes, when you're talking about households 10 million and up, these people have ambitions that go beyond what am i going to do when i'm 80 they are talking about
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generational wealth, charitable, so having the ability to help people with those questions supercedes do we want to have 40% u.s. stocks or 45% that is not the central issue of these types of relationships so i think the asset allocation has to reflect that reality. we don't want to put things into portfolios that cause behavioral issues that will derail somebody's future. >> all right good read. it's definitely a good read. >> thank you >> we'll have a link to it on our page as well for all of you to find t.sit sue herera with the latest headlines. secretary of state rex tillerson says president trump will not certify iran as being in compliance with the 2015 nuclear accord he will ask congress to toughen u.s. policy by requiring tehran to allow greater access to its nuclear site tillerson adding it doesn't withdraw the u.s. from the accord cnbc will take president trump's announcement live in just a few
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moments from now. russian foreign minister lavrov meeting with a syrian opposition meeting in moscow lavrov hailed him for creating conditions for a direct dialogue hand political settlement of the syrian crisis. back here at home, the university of north carolina has avoided major penalties after the ncaa said it could not conclude that there were academic violations on irregular courses taken by its athletes. the ncaa released its report earlier this morning. and delta airlines' app will automatically check in passengers for their flights airline says the future is in response to customer demand. passengers will get their boarding passes automatically 24 hours before takeoff >> that's the news update this hour brian sullivan is here with what's ahead here on "power lunch. hi, brian. >> thanks, sue the president talking about the iran deal and likely to decertify it we'll be taking that live. there you go, empty podium we'll take that right into
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"power lunch" and, of course, give you basically the wrap-up on this. what it might mean for oil and your money also, could you say good-bye to equifax and the other unions having your social security number a congressman is pushing for that bill. he'll be our guest. and the show of movie pass will join us on how his fight with the movie theaters is going. he was the founding executive of netflix. we'll ask ask him, guys, about how solid netflix has been and whether or not he's surprised. all of that coming up at the top of the hour on "power lunch. more "halftime report" right after this short break
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i can't wait for her to have that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise
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you were just looking at nut record highs for stocks. that's the dipped matic reception room at the white house. we are expecting president trump momentarily to make those comments about the iran nuclear deal we will take you there live has soon as we do see the president. meantime, let's talk about some more stocks that are on the move today. the miners, strong iron ore import in september and look at the stock gains. >> china keeps coming out saying we'll cut back our steel
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production but if iron ore is going, they are increasing it. that has everything up, including the steel stocks, and that's another indication of how global growth is moving forward, so, look, i think some of them have reasonable valuations, and value is such a volatile comedy. >> amberella, josh, target increase to 65 from 58. >> stock has had a huge bounce off of 40 but it's a really ugly chart. still in a very well-defined downtrend. that has not changed i want nothing to do with it. >> transports at another intraday high. >> capacity tight across all modes of transportation. freight rates continue to move higher this is taking advantage of a sector contribution to what's contributing to the advance. it's not just the energy sector which is driving transports right now and taking advantage of the cyclical recovery in the u.s. these stocks i think are well-positioned continue to do well. >> a rough week for media stock.
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viacom among them which got downgraded earlier in the week but bouncing back today, up nearly 5%. anything to hang on there? >> look, i don't think there's anything newsworthy today in the name viacom is one of the names if you'll own it it's very cheap. the reason to own it is because you think somebody is going to take it out. there's been marriages between content and distribution i think the only thing that's holding back further is acquisition in the space is resolutions for the time warner and at&t deal. frankly, whether it's vie many cole, cbs or any number of other properties, they are attract i have to take over big. >> up 7%, street likes the guidance, hp. >> went from six times earnings, earnings have grown 7% this is a company we bought when it was true value stock and time to take profit off the table. >> and speaking of hewlett-packard, the ceo will be with "mad money" tonight, jim cramer exclusively sorry.
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okay 6:00 p.m. eastern time tonight president trump expected to speak momentarily from the white house. we will bring that to you live "ha "halftime report" is back right after this [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.
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check it out! self-appendectomy! oh, that's really attached. that's why i rent from national. where i get the control to choose any car in the aisle i want, not some car they choose for me. which makes me one smooth operator. ah! still a little tender. (vo) go national. go like a pro. welcome back still waiting on the president there at the white house the diplomatic reception room. president trump expected momentarily to make those remarks on the iran nuclear deal we're going to take you live to the white house as soon as we see president trump.
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let's look ahead to next week. big earnings on tap, guys, that we should get ready for. morgan stanley, j&j, j&j with a couple upgrades this week, ibm you've got united airlines, steve. thinking about the airlines and then we finish the week next some of the issues there on whether the dividend was at risk which one do you want on the list >> it will be interesting to hear what travelers have to say given the storm. and i don't know that all that stuff has been discounted into these names, so maybe that is the one with the post earnings volatility, in an otherwise not volatile stock >> every day is must watch tv. we have netflix on monday, you've got then goldman and united health care, which have i
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am very interest in what the president just signed for. we know what the airlines are going to say in conference and pre-announced, but delta and united, i think they go higher >> paypal on thursday, blackstone on thursday, baker hughes coming up later in the week >> i think blackstone will be interesting to watch with 100 billion in powder and to see what the allocation is going forward, where they are buying and selling and what they have done with the real estate. >> jimmy >> two names of interest one is just for the theater of it, which is ibm look, i'm not making the call, but at some point they will see earnings rise. i think in this quarter it will be the 20th quarter in a row, they are short and still waiting for the transition to take over, but here's the point i'm depriving at the earnings result that comes out where you see revenues start to grow again could be the turning point. not making the call, i'm just saying that's the theater of the week in terms of the call of the week, winnebago is a name i've been in and competitor still in,
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a competitor of industries knocked the lights out numbers a week ago and i expect the same thing for winnebago. the stock has been a horse and it will continue. >> we are just a couple minutes from the president speaking there in the white house regarding the iran nuclear deal. we do have eamon javers standing by, not a surprise if you have listened to what the president has said over many months. he has long said this is the worst deal ever. >> yeah, when it's the worst deal ever, it makes it tricky for the president of the united states to stay in the deal, but that's what the president is going to do today. the intent here is not to get out of the iran nuclear deal it is to decertify that deal under a separate piece of legislation that moved up on capitol hill and kick congress in high gear to decide whether to reimpose sanctions. if they did do that, the united states would be out of the deal.
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but today i talked to michael hayden, the former head of the cia about this, and he said the one danger here is that even if you have just a little bit of movement on this, you could set off larger tremors he said, for example, what happens if the europeans get worried that the u.s. is going to impose sanctions. and that means they will stop investing in iran and stop doing business there that could cause the iranians to get frustrated and could cause them to pull out of the deal so it's always sensitive stuff when you move anything on this deal. >> and eamon, here's the president of the united states >> my fellow americans, as president of the united states, my highest obligation is to ensure the safety and security of the american people history has shown that the longer we ignore a threat, the more dangerous that threat becomes. for this reason, upon taking office, i have ordered a complete strategic review of our
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policy toward the rogue regime in iran. that review is now complete. today i'm announcing our strategy along with several major steps we're taking to confront the iranian regime's hostile actions and to ensure that iran never, and i mean never, acquires a nuclear weapon our policy is based on a clear assessment of the iranian dictatorship its sponsorship of terrorism and its continuing aggression in the middle east and all around the world. iran is under the control of a fanatical regime that seized power in 1979 and forced a proud people to submit to its
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extremist rule this radical regime has raided the wealth of one of the world's oldest and most vibrant nations. and spread death, destruction and chaos all around the globe beginning in 1979, agents of the iranian regime illegally seized the u.s. embassy and tehran and held more than 60 americans hostage during the 444 days of the crisis the iranian-backed terrorist group hezbollah twice bombed our embassy in lebanon, once in 1983 and again in 1984. another iranian supported bombing killed 241 americans, service members they were, in
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their barracks in beirut in 1983 in 1996 the regime directed another bombing of american military housing in saudi arabia, murdering 19 million americans in cold blood. iranian proxies provided training to operatives who were later involved in al qaeda's bombing of the american embassies in kenya, tanzania and two years later killing 224 people and wounding more than 4,000 others the regime harbored high-level terrorists in the wake of the 9/11 attacks, including osama bin laden's son. in iraq and afghanistan, groups supported by iran have killed hundreds of american military personnel. the iranian dictatorship's
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aggression continues to this day. the regime remains the world's leading state-sponsor of terrorism and provides assistance to al qaeda, the taliban, hezbollah, hamas and other terrorist networks it develops, deploys and proliferates missiles that threaten american troupes and our allies it harasses american ships and threatens freedom of navigation in the arabian gulf and in the red sea. it imprisons americans on false charges. and it launches cyber attacks against our critical infrastructure, financial system and military the united states is far from the only target from the iranian dictatorship's long campaign of
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bloodshed. the regime violently suppresses its own citizens it shot unarmed student protesters in the street during the green revolution this regime has fueled sicktarian violence in iraq and vicious wars in yemen and syria. in syria the iranian regime has supported the atrocities of bashar al assad's regime and condoned assad's use of chemical weapons against helpless civilians, including many, many children. given the regime's murderous past and present, we should not take lightly its sinister vision for the future the regime's two favorite chants are, "death to america" and "death to israel."
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realizing the gravity of the situation, the united states and the united nations security council sought over many years to stop iran's pursuit of nuclear weapons with a wide array of strong economic sanctions. but the previous administration lifted these sanctions just before what would have been the total collapse of the iranian regime through the deeply controversial 2015 nuclear deal with iran, this deal is known as the joint comprehensive plan of action or jcpoa. as i have said many times, the iran deal was one of the worst and most one-sided transactions the united states has ever entered into the same mindset that produced this deal is responsible for
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years of terrible trade deals that have sacrificed so many millions of jobs in our country to the benefit of other countries. we need negotiators who will much more strongly represent america's interest the nuclear deal through iran's dictatorship, a political and economic lifeline, providing urgently-needed relief from the intense domestic pressure, the sanctions had created. it also gave the regime an immediate financial boost. and over $100 billion, its government could use to fund terrorism. the regime also received a massive cash settlement of $1.7 billion from the united states a large portion of which was physically


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